“The mortgage market is playing a crucial role in helping buyers make their first step onto the property ladder, with as many as one in five mortgages advanced to first-time buyers in the last quarter of 2018. Affordability and deposit criteria have long been the main sticking points for new buyers. However, with high loan-to-income lending at its highest point since 2007, and high loan-to-value lending continuing to grow, the industry is alleviating the primary financial obstacles faced by the next generation of homeowners.

“The fact that high loan-to-income lending now represents almost half of overall lending should not be cause for concern. Rigorous stress testing remains in place which ensures no borrower will be granted a loan they cannot afford in the long-term. The stress testing rates applied are much higher than the likely increase in interest rates, so even when today’s low rate environment ends, borrowers should be able to afford higher repayments (assuming they haven’t seen a dramatic change in their circumstances).

“As the number of product options available to first time buyers continue to grow, borrowers must shop around to choose the right product that matches their financial needs and ambitions. Speaking to an independent mortgage broker is the only way of getting a complete whole-of-market view.”